Appalachian State University will receive over $1.5 million from the U.S. Attorney’s Office after it accidentally paid a fake construction company, according to a press release from the U.S. Department of Justice.
U.S. Attorney R. Andrew Murray announced ASU will get the money after successful civil forfeiture proceedings against money seized from bank accounts controlled by alleged fraudsters and money launderers who targeted the higher education institution.
“In this case, the FBI located and seized the stolen funds even before criminal investigative targets had been identified or a criminal case had been filed,” Murray said.
According to the civil forfeiture complaint, beginning in or around December 2016, one or more fraudsters convinced ASU staff to send over $1.9 million to one or more companies operated by them. Court reports said the fraudsters posed as a construction company building ASU’s new health sciences facility.
The fraudsters used numerous bank wire transfers to launder the money among various companies.
When ASU discovered the fraud, staff notified the FBI and fully assisted in the investigation. The FBI found $1,542,442.33 of the money dispersed in multiple bank accounts and obtained forfeiture seizure warrants for it.

